Retirees who claim retirement at 63 are much less likely to have health problems than those who don't. This misses an important goal.
Berlin – In 2014, the then Minister of Labour, Andrea Nahles (SPD), introduced the retirement age of 63 with the Grand Coalition. The intention behind this was to give older employees in poor health the opportunity to retire at the age of 45 without deductions after 63 years of contributions. Since this age limit is gradually increasing, it is now 64 years.
Retirement at 63 misses political targets: recipients are better off in terms of health than "normal" retirees
When it was introduced, the government assumed that there would be around 200,000 applicants per year for deduction-free early retirement. However, according to the German Pension Insurance (DRV), around 2021,257 applications were submitted in 000, compared to 260,000 the year before.
Now it turns out that retirement at 63 not only exacerbates the shortage of skilled workers. Nahles' intended goal is also missed, as the Süddeutsche Zeitung reports. Data from the DRV and the Socio-Economic Panel show that employees who use the pension at 63 are in better health than those who do not receive a deduction-free pension. "People in retirement at 63 are actually doing much better than the others," the newspaper quotes Ruth Schüler, a pension expert at the Institute of the German Economy (IW).
The baby boomers are happy to accept the offer of "retirement at 63". (Symbolic image) © IMAGO/Simona Pilolla
Retirement at 63: Scheme is hardly used by low-income workers
In addition, many early retirees have worked for less than 45 years without having to fear cutbacks. According to pension expert Axel Börsch-Supan, it is 39 years for men and 37 years for women. The reason for this is that, in addition to work, military and civilian service, periods of unemployment or training are also credited to those who have been insured for a particularly long time.
The data also show that retirement at 63 is mainly used by middle-income people. Almost all employees with lower incomes, on the other hand, work until regular retirement. "The regulation is of very little use to people with low incomes," Ruth Schüler told the Süddeutsche Zeitung.
What's next for retirement at 63? Economists advocate abolition
What happens to retirement at 63 is a hot topic. For example, the economist Monika Schnitzer is calling for their abolition. Rainer Dulger, President of the Employers' Association, is also campaigning for a move away. "The pension from 63 has led to a brain drain," he told the German Press Agency. Many highly qualified workers would no longer be available, which would have weakened companies.
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But the SPD and trade unions want to stick to it. IG Metall opposes a move away from retirement at the age of 63. Labor Minister Hubertus Heil (SPD) said in an interview with the newspaper Rheinische Post: "No, we will not stop the possibility of retiring after 45 years without deductions!"
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